Wine and liquor fraud: NY state fines big alcohol distributor in ‘pay to play’ scheme

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Wine and liquor fraud: NY state fines big alcohol distributor in ‘pay to play’ scheme

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The investigation initially focused on activities in the Albany area.

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Wine and liquor fraud: NY state fines big alcohol distributor in ‘pay to play’ scheme Updated December 20, at 3: The investigation initially focused on activities in the Albany area. Southern Glazer’s violated state liquor law by offering gifts and services to retail customers, such as restaurants or stores, in return for their business, or to ensure those retailers did not do business with Southern’s competitors, according to a liquor authority press release.

Specifically, the authority found, Southern Glazer’s “salespersons were running up large expenses on their corporate credit cards at favored retailer’s establishments, without receiving anything in return, to influence their purchasing decisions,” the SLA release said. The SLA called this “an illegal practice commonly known as ‘credit card swipes. The SLA says this is the largest fine it has ever issued, and is one of the largest by a state agency against a liquor wholesaler in the United States.

The investigation began in July , the SLA said, when retailers in the Albany area complained they had been placed on the state agency’s list of retailers who had failed to pay their alcohol sales bills on time. Later that year, a small liquor store owner complained that Southern had rejected his order for a discounted pallet of wine. The subsequent probe uncovered the credit card swipe scheme and incomplete record-keeping by Southern, the SLA said.

Eventually, Southern Glazer’s Albany district manager admitted to the scheme. The investigation then led to other district managers for Southern Glazer’s. It has offices and warehouses around the state, including in the Albany, Syracuse, Rochester and Buffalo areas. As part of the fine, Southern Glazer’s agreed to work with the state in the future to ensure compliance to the law and to report suspicious activity.

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